U.S. refiners have been pumping out strong profits due to
high crack spreads, the difference between the price of crude
oil and refined products. Crude prices have fallen more than 70
percent since June 2014.

On an adjusted basis, Valero reported earnings of $1.79 per
share for the fourth quarter ended Dec. 31, beating the average
analyst estimate of $1.45 per share, according to Thomson
Reuters I/B/E/S.

Valero's refining margin fell to $10.87 per barrel in the
quarter from $11.17 per barrel a year earlier.

Net income attributable to Valero's stockholders fell to
$298 million, or 62 cents per share, for the fourth quarter
ended Dec. 31, from $1.16 billion, or $2.22 per share, a year
earlier.

The company incurred a inventory valuation adjustment
charge of $790 million.